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Exceed Energy Inc. Announces Granting of Stock Options

CALGARY, ALBERTA--(CCNMatthews - May 25, 2006) - Exceed Energy Inc. (TSX VENTURE:EX.A) (TSX VENTURE:EX.B) ("Exceed" or the "Corporation") announces that in accordance with the Corporation's stock option plan the Corporation has granted stock options to purchase 75,000 common shares of the Corporation at an exercise price of $0.34 to an officer of the Corporation. These stock options expire five (5) years after the date of issuance and vest in equal amounts over a three year period. This grant of stock options is subject to TSX Venture Exchange approval.

Exceed Energy Inc. is a Calgary-based emerging oil and gas company engaged in the exploration, development, and exploitation of oil and gas reserves in Western Canada. Exceed's Class A shares and Class B shares trade on the TSXV under the symbols "EX.A" and "EX.B" respectively.

Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projects relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from the potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Exceed's operations or financial results are included in Exceed's reports on file with Canadian securities regulatory authorities that may be accessed at www.sedar.com or through the Company's website, www.exceedenergy.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.